A pseudonymous cryptocurrency analyst and trader ‘Credible Crypto', turned a $10,000 bet into a $100,000 profit by trading the top meme cryptocurrency Dogecoin DOGE/USD.
What Happened: This feat was achieved within 48 hours amidst a market-wide bullish trend that particularly saw meme coins soar in value.
Starting on Feb. 29, Credible Crypto began by buying Dogecoin for $0.121, employing a “50x leverage.”
Leverage is a trading mechanism that allows traders to amplify their exposure to a financial asset by using borrowed funds. In this case, a 50x leverage would enable the trader to take a much larger position than they could with their own capital alone.
Credible Crypto explained his risk control, saying, "When I entered this trade, I wanted to risk $10,000. Okay? So, again, regardless of what leverage I was using, based on my position size, $10,000 was being risked. I was willing to lose $10,000 on this trade."
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: The primary tactic revolved around anticipating Dogecoin to break out from a phase of stable prices.
The initial approach involved spotting a likely breakout from a Dogecoin price consolidation. Facing the turmoil of market swings, the trader’s $10,000 bet fell $7,000 into the red.
Later on, acting on technical analysis, the analyst said he amplified his stake. By analyzing a second juncture for entry, the investment turned out to be fruitful, potentially increasing the initial investment by $90,000.
Dogecoin was up over 70% over the past week, driven by an overall bullish sentiment in the cryptocurrency sphere.
The rise comes amid a surge in DOGE’s price and a growth in accumulations by its wealthiest holders—often referred to as “whales.” Since 2024, there’s been a 0.7% increase in the number of addresses that possess more than 100,000 DOGE coins.
Benzinga's Note: Investors should conduct thorough research, consider their personal financial situation, and, if necessary, seek professional advice before engaging in trading or investing in any meme coins.
Price Action: At the time of writing, DOGE was trading at $0.15, up 11.45% in the last 24 hours, according to Benzinga Pro.
Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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